Julia Stoll
Research expert covering TV and video media
Subscription video-on-demand in the U.S. - statistics & facts
Choose a region:
Popular with media consumers of all ages and generating billions of U.S. dollars in revenue in the United States alone, subscription video-on-demand (SVOD), an entertainment programming model where users pay a monthly fee in exchange for instant access to a streaming library, is certainly here to stay. However, the streaming industry is a fast-paced and changeable one that seemingly never sleeps. In the last few years, streaming services struggled to continue to grow in the saturated U.S. SVOD market, and services even lost a substantial number of customers.
In an attempt to address churn, content plays a crucial role. A 2024 survey revealed that the primary reasons people subscribe to SVOD services are content-related. Major live events, for example, significantly impact subscription numbers for streaming services. A 2024 analysis showed that the streaming services Paramount+, Peacock, and Netflix experienced a valuable number of new sign-ups due to big sporting events like the Super Bowl, the Summer Olympics, and the boxing match between Jake Paul and Mike Tyson.
As industry giants vie for subscribers, a complex web of factors including content and costs are shaping the future of the American SVOD industry. From streaming major live events to the rise of flexible and sustainable business models, streaming platforms are navigating uncharted waters in their quest to retain and expand their user base.
Streaming providers’ battle for subscriber loyalty
Amazon Prime Video and Netflix have emerged as the SVOD market leaders in the United States, each commanding over 20 percent market share as of 2024, leaving competitors like Max and Disney+ behind. Netflix, in particular, has cultivated a loyal customer base, with more than half of its subscribers in the United States and Canada using the service for two years or longer. In contrast, newer entrants to the streaming market are struggling to keep subscribers engaged - a significant share of Apple TV+ and Paramount+ customers unsubscribe within less than six months.In an attempt to address churn, content plays a crucial role. A 2024 survey revealed that the primary reasons people subscribe to SVOD services are content-related. Major live events, for example, significantly impact subscription numbers for streaming services. A 2024 analysis showed that the streaming services Paramount+, Peacock, and Netflix experienced a valuable number of new sign-ups due to big sporting events like the Super Bowl, the Summer Olympics, and the boxing match between Jake Paul and Mike Tyson.
Cost becomes a key driver
With more and more SVOD services raising their prices, a low subscription fee is now more important than ever for many customers considering a subscription. It is therefore unsurprising that a large number of viewers would not only commit to a year-long contract if offered a discounted rate, but also cancel their subscriptions if the cost increased. Furthermore, consumers increasingly opt for the many new and existing lower-cost subscription tiers with ads. Ad-supported plans accounted for over half of SVOD sign-ups in the beginning of 2024, up from a third recorded around two years earlier, highlighting even more the complexity of the SVOD market where pricing strategies influence subscription patterns.As industry giants vie for subscribers, a complex web of factors including content and costs are shaping the future of the American SVOD industry. From streaming major live events to the rise of flexible and sustainable business models, streaming platforms are navigating uncharted waters in their quest to retain and expand their user base.
Julia Stoll
,
Feb 18, 2025
Julia Stoll
Research expert covering TV and video media
